Debt payments by countries most vulnerable to climate crisis soar

illuminem summarizes for you the essential news of the day. Read the full piece on The Guardian or enjoy below:

🗞️ Driving the news: Debt payments by the 50 countries most vulnerable to climate crisis have doubled since the pandemic, now at the highest in over 30 years
• These countries are paying 15.5% of government revenues to external creditors
• Debt Justice calls for rapid, effective debt relief

🔭 The context: Before Covid-19, these countries paid less than 8% of revenues on debt; the lowest point was 4% in 2010
• Comprehensive debt relief in the late 1990s and mid-2000s had reduced their burdens
• The pandemic's debt suspension scheme has ended, causing repayments to soar

🌍 Why it matters for the planet: High debt payments hinder investments in climate action in the most vulnerable countries
• Without relief, these countries cannot effectively combat the climate crisis
• Ensuring private lenders participate in debt relief is crucial for global climate justice

⏭️ What's next: A 10-day conference in Bonn will focus on financing climate action amidst unsustainable debt
• The example of Zambia, struggling with drought and debt, will be highlighted
• Calls for rich countries to provide grant-based climate finance are growing louder

💬 One quote: "Record levels of debt are crushing the ability of the most vulnerable countries to tackle the climate emergency" (Heidi Chow, executive director of Debt Justice)

📈 One stat: 38% of debt payments are to private lenders, 35% to multilateral institutions, 14% to China, and 13% to other governments

Click for more news covering the latest on climate change